On The Global Implications of a Transatlantic Treaty---TTIP , from the point view of Taiwan.

The introductory Statement by Hsu Tain-Tsair at the Ralf Dahrendorf Roundtable on 12 June 2015

Dr.Helble, thank you for your instroduction, distinguished guests, ladies and gentlemen and members of the media, it is wonderful to be here at the European Liberal Forum, and a great honor and pleasure to meet all of you today.

The US and the Eurozone enjoy enormous privileges as de-facto issuers of global currency, and together they control nearly 50% of the world’s GDP, and 30% of the world exports.

The TTIP without doubt will mean that these two superpowers can influence economic stability and growth on a larger global scale than ever before. At the same time, it is also expected that we will see a worldwide development of political economy order based on both the ruled-based market economy and liberal democracy.

Of course, both US and Europe are the most important trade partners of Taiwan, and the possible effects created by the TTIP on the Taiwanese economic development can be substantial and significant.

At this most historically important moment in time, before we discuss what and how the TTIP, and even TPP, will mean for the future of Taiwanese economy and its development of international relationship as a free economy and liberal democracy, I’d like to emphasize how important it is for Taiwan to participate in the TPP and have free trade agreements with the EU, as a common consensus and consistent desire of everyone and all political parties in Taiwan.

Frankly speaking, during the recent years of world-wide economic turbulence and the rising of China, Taiwan’s economy has suffered greatly due to increasing competition from developing countries, especially from China, in the area of FDI, and an increasing uncertainty and instability in the financial market, mostly caused by the massive spillover effects of the unconventional monetary policy adopted by other advanced economies.

Taiwan now have to prepare itself to deal with rising domestic and external challenges, ranging from the gradual erosion of freedom and democracy, to an increasing uncertainty over Taiwan’s ability to maintain its economic autonomy as mentioned by the Democratic Progressive party’s presidential candidate for the 2016 elections, Dr. Tsai in-wen.

For most Taiwanese, the state of our economy is a source of great distress. China’s rise as the world’s factory have especially affected Taiwan’s efficiency-driven model of economic growth. Not only has the triangular trade pattern increasingly replace the traditional way of trade by Taiwanese manufacturing, but it has also gradually resulted in a widening income gap, outsourcing of jobs, and stagnation of salaries, with the young generation particularly hard hit by the economic slowdown.

Additionally, as Asia faces rising nationalism, irredentism, and threat of military conflict, Taiwan again must face new challenges fostering peace and stability while maintaining its spirit of giving and sharing and making efforts to cooperate with the worldwide international civil communities and free countries. Taiwan also has to commit itself to a consistent, predictable, and sustainable relationship with China. Of course, more importantly Taiwan needs to readjust, restructure and reform itself to meet the new demands and challenges in the new world following the emergence of TTIP, TPP, even RCEP, and so on.